{"id":2828,"date":"2015-02-01T01:31:21","date_gmt":"2015-02-01T01:31:21","guid":{"rendered":"http:\/\/marniepehrson.com\/unplugged\/?p=2828"},"modified":"2015-02-01T01:52:10","modified_gmt":"2015-02-01T01:52:10","slug":"entrepreneurship-declining-and-what-it-means","status":"publish","type":"post","link":"https:\/\/marniekuhns.com\/unplugged\/2015\/02\/01\/entrepreneurship-declining-and-what-it-means\/","title":{"rendered":"Entrepreneurship Declining and What It Means"},"content":{"rendered":"<p>Did you know that there has been a sharp decline in entrepreneurial-ism in the last decade? A recent <strong><a title=\"Brookings Institute Study\" href=\"http:\/\/www.brookings.edu\/~\/media\/research\/files\/papers\/2014\/05\/declining%20business%20dynamism%20litan\/declining_business_dynamism_hathaway_litan.pdf\" target=\"_blank\">study by Brookings Institution<\/a><\/strong> shows that America, which has long been an entrepreneurial nation, is losing its entrepreneurs.<\/p>\n<p><strong>Why should this matter to you and me?<\/strong> Anyone who has worked in or for a large corporation knows how long it takes to make decisions, to take advantage of market trends, adapt and implement. I\u2019ve often compared them to elephants trying to turn on a dime. They simply do not have the flexibility of small businesses.<\/p>\n<h2>Small Businesses Are<br \/>\nThe Petri Dish of Innovation<\/h2>\n<p>Entrepreneurs, on the other hand, are<\/p>\n<ul>\n<li>Fast-acting,<\/li>\n<li>adaptable,<\/li>\n<li>cutting edge, and<\/li>\n<li>innovative<\/li>\n<\/ul>\n<p>They<\/p>\n<ul>\n<li>Create manufacturing opportunities,<\/li>\n<li>foster industry, and<\/li>\n<li>employ much of the middle class<\/li>\n<\/ul>\n<p>Look at the major innovators: Bell, Tesla, Edison, Gates and Jobs. They all started small in their garages or small shops. <strong>Innovation rarely comes from large corporations. It comes in the petri dish of entrepreneurship.<\/strong><\/p>\n<h2>Entrepreneurship Fosters Freedom<\/h2>\n<p>In his book, <strong><a title=\"freedom shift oliver demille\" href=\"http:\/\/www.amazon.com\/gp\/product\/098309960X\/ref=as_li_tf_tl?ie=UTF8&amp;tag=ideamarketers-20&amp;linkCode=as2&amp;camp=1789&amp;creative=9325&amp;creativeASIN=098309960X\" target=\"_blank\">FreedomShift : 3 Choices to Reclaim America\u2019s Destiny<\/a><\/strong>, Oliver DeMille talks about the three things that could keep the United States free. The first is entrepreneurship. Many of the Founding Fathers (<strong><a title=\"founding fathers were entrepreneurs\" href=\"http:\/\/www.inc.com\/bill-murphy-jr\/before-they-founded-the-country-the-founding-fathers-were-mostly-entrepreneurs.html\" target=\"_blank\">Jefferson, Franklin, Adams, Hancock<\/a><\/strong>, etc.) were entrepreneurs.<\/p>\n<p><strong>Entrepreneurs were the innovative, forward thinking individuals who had the courage to create an entirely new paradigm of government<\/strong>. The U.S. Constitution made our country the free nation that it is; and it was through the inspiration of brave entrepreneurs that we enjoy our freedoms today.<\/p>\n<h2>Why Is Entrepreneurship Declining?<\/h2>\n<p>Yet, entrepreneurship is declining, but why? According to the <a href=\"http:\/\/www.brookings.edu\/~\/media\/research\/files\/papers\/2014\/05\/declining%20business%20dynamism%20litan\/declining_business_dynamism_hathaway_litan.pdf\" target=\"_blank\">Brookings Institution report<\/a>,<\/p>\n<blockquote><p>Our findings stop short of demonstrating why these trends are occurring and perhaps more importantly, what can be done about it. Doing so requires a more complete knowledge about what drives dynamism, and especially entrepreneurship, than currently exists. But it is clear that these trends fit into a larger narrative of business consolidation occurring in the U.S. economy\u2014whatever the reason, older and larger businesses are doing better relative to younger and smaller ones. <strong>Firms and individuals appear to be more risk averse too\u2014businesses are hanging on to cash, fewer people are launching firms, and workers are less likely to switch jobs or move<\/strong>.\u201d<\/p><\/blockquote>\n<p>The economic downturn certainly has not contributed to people being willing to take risks. Also, it\u2019s interesting to note that the middle class is also dying (<strong><a title=\"middle class is dying\" href=\"http:\/\/www.nytimes.com\/2014\/02\/03\/business\/the-middle-class-is-steadily-eroding-just-ask-the-business-world.html?hp&amp;_r=2\" target=\"_blank\">See NY Times article on this subject<\/a><\/strong>).<\/p>\n<p>The middle class-entrepreneurship question is\u00a0sort of a &#8220;chicken and the egg&#8221; situation. Is the death of entrepreneurship killing off the middle class? Or is it the death of the middle class that\u2019s eroding entrepreneurship? It definitely takes money to start, market and grow a business. If you\u2019re at poverty level, you\u2019re going to have a tougher time being an entrepreneur. And many entrepreneurs who have been hit hard by the economy, have been forced to close their doors.<\/p>\n<p>Entrepreneurs discover soon enough that not only do they have operating expenses, but also they\u00a0are slammed with self-employment taxes, federal taxes and insurance expenses that the average 9-to-5\u2019er will never see.<\/p>\n<p>The economic climate is not friendly to entrepreneurs, and it\u2019s not friendly to the middle class. You kill one and you kill the other.<\/p>\n<figure id=\"attachment_2831\" aria-describedby=\"caption-attachment-2831\" style=\"width: 557px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/marniepehrson.com\/unplugged\/wp-content\/uploads\/2015\/02\/brookingsentrepreneurchart.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2831\" src=\"http:\/\/marniepehrson.com\/unplugged\/wp-content\/uploads\/2015\/02\/brookingsentrepreneurchart.jpg\" alt=\"Brookings Institute Report Graph\" width=\"557\" height=\"402\" srcset=\"https:\/\/marniekuhns.com\/unplugged\/wp-content\/uploads\/2015\/02\/brookingsentrepreneurchart.jpg 557w, https:\/\/marniekuhns.com\/unplugged\/wp-content\/uploads\/2015\/02\/brookingsentrepreneurchart-300x217.jpg 300w\" sizes=\"auto, (max-width: 557px) 100vw, 557px\" \/><\/a><figcaption id=\"caption-attachment-2831\" class=\"wp-caption-text\">Brookings Institute Report Graph<\/figcaption><\/figure>\n<p>Commenting on the <a href=\"http:\/\/www.brookings.edu\/~\/media\/research\/files\/papers\/2014\/05\/declining%20business%20dynamism%20litan\/declining_business_dynamism_hathaway_litan.pdf\" target=\"_blank\">Brookings Institute Report,<\/a> Jean Card wrote in <strong><a title=\"decline in entrepreneurship\" href=\"http:\/\/www.usnews.com\/opinion\/blogs\/opinion-blog\/2014\/05\/08\/dont-ignore-the-brookings-study-on-declining-us-entrepreneurship\" target=\"_blank\">US News and World Report<\/a><\/strong>,<\/p>\n<blockquote><p>American entrepreneurship is at its lowest point in 30 years, and the decline since 2009 has been precipitous\u2026 I don\u2019t think you need to be an economist to find the study\u2019s\u00a0chart\u00a0overlaying the trend lines of business start-ups and business closures (with the &#8220;good&#8221; news going down and the &#8220;bad&#8221; news going up, to the point where they actually, gasp, pass each other in opposite directions) to be grab-your-chest scary. I think you only need to be an American who appreciates the fact that this nation has been, historically, economically strong because of vibrant entrepreneurship.\u201d<\/p><\/blockquote>\n<p>My friend\u00a0Daniel DeCoopman and I were discussing this phenomenon the other day. He said something I think\u00a0is important.<\/p>\n<blockquote><p>Entrepreneurs are the lookouts, the purveyors of the future. They stand at a place unobstructed by barriers\u201d (or at least they used to). \u201cThey can see the horizon and bring forward technology. Without this market segment, we greatly impede our ability to perform and compete in the global economy. Entrepreneurship is the creative part of our culture, yet it\u2019s no longer being valued.\u201d<\/p><\/blockquote>\n<p>And we will pay the price\u2026<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Did you know that there has been a sharp decline in entrepreneurial-ism in the last decade? A recent study by Brookings Institution shows that America, which has long been an entrepreneurial nation, is losing its entrepreneurs. Why should this matter to you and me? Anyone who has worked in or for a large corporation knows&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[19,36,45],"tags":[173,174],"class_list":["post-2828","post","type-post","status-publish","format-standard","hentry","category-entrepreneurship","category-financial-freedom","category-freedom-2","tag-decline-of-entrepreneurship","tag-middle-class-is-dying"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Entrepreneurship Declining and What It Means - Marnie Pehrson Kuhns<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/marniekuhns.com\/unplugged\/2015\/02\/01\/entrepreneurship-declining-and-what-it-means\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Entrepreneurship Declining and What It Means - Marnie Pehrson Kuhns\" \/>\n<meta property=\"og:description\" content=\"Did you know that there has been a sharp decline in entrepreneurial-ism in the last decade? 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